Prime market will inject life back into sub-prime

Roger Morris, managing director, em-financial believes that life will be injected back into the sub-prime market through problems in the prime market.

Morris says that up to a year ago, prime lenders were creeping into the sub-prime side of business and stealing cases away from packagers, but now because they are refusing those types of cases, packagers are reaping the rewards.

Morris says: “All the declined applications from prime lenders are now starting to come through.

“This though is actually helping packagers more than ever. We are getting cases where someone has a £400 County Court judgement which a high street lender won’t do, and that is absolutely beautiful business for a sub-prime lender.

“We’re getting business that this time last year the clean lenders were taking from us.

“Brokers are starting to realise the value of packagers and once they’ve realised the fact that we can get them a deal, our applications have increased.”

He adds: “Life will come back to the sub-prime market because of the lack of near prime cases in the mainstream market.

“While you have to be prudent and ensure that you keep your cost base down, independent packagers can adapt to market conditions quicker and will survive through these time.”